The objective of the study was to find suitable acquisition targets for an international ingredients company to assist in expanding its current portfolio.
A large global company operating in 90 countries with an established portfolio of natural health ingredients wanted to expand its offering through partnerships or acquisitions.
The scope of the project was to identify potential partnerships or acquisition targets of entities offering natural ingredients or products in specific sub-sectors in broad areas such as gut health and weight management.
A detailed set of criteria relating e.g. to the size of the company, products and location were used to define the types of company or opportunities of interest.
Method & Results
Potential targets were identified from a wide range of sources and databases, including CPL’s extensive network of contacts which the target sectors. The search was very comprehensive, for example it included screening >600 companies from investor networks (in addition to other companies found) and scanning ~30,000 patents. The aim was to find opportunities which would be ‘below the radar’ as well as those which were in the public domain.
CPL used its proprietary NAMAP (Non-Parametric Analysis for Acquisitions and Partnerships) methodology to select and rank the best potential targets through a number of iterations.
Whilst all companies found at each stage of the project were provided to the client, the final round of analysis included >60 companies which were the best fit to the target criteria. These companies were ranked using weighted criteria and recommendations for each were made.
A detailed report was provided with the justification of the scorings used for each company and a spreadsheet which included lists of all companies found (including those rejected at each stage) and analysis. The client was able to populate its M&A pipeline using this information.
CPL was also retained to make warm introductions to potential targets and assist with due diligence as required.